Budget woes may stop 276 public works projects

POLITICAL DIGEST

Nearly 300 state-funded public works projects will go forward through Friday, but they could be stopped cold if state leaders cannot find a solution to California's budget crisis by the end of the week.

The Pooled Money Investment Board that controls financing for such jobs already has stopped funding 5,600 projects as a result of the state's cash crunch, allowing the remaining 276 projects to continue because stopping them would be too costly.

But time is running short.

"We have not made the call to shut those down pending how budget negotiations progress over the next several days," said H.D. Palmer, spokesman for the state Department of Finance. The finance board is made up of the head of Palmer's department along with state Treasurer Bill Lockyer and Controller John Chiang.

The remaining projects include building improvements at UC Berkeley and UCSF as well as transportation improvements such as carpool lanes on Highway 101 in Sonoma County and on the Sunol grade in Alameda County. Bay Area transit officials have said they will buy state bonds to ensure that some projects go forward.

Meanwhile, construction workers plan to hold rallies today outside the offices of legislative leaders in Fresno, Los Angeles and Sacramento. Workers want the Legislature to pass a budget now to avoid stopping the remaining projects.